KEI Industries Projects Rs 800 Crore Revenue From Newly Commissioned Pathredi Plant

KEI Industries Ltd. expects to generate an annual revenue of up to Rs 800 crore from its new plan in Rajasthan’s Pathredi, according to the company’s chairman and managing director Anil Gupta.

The Pathredi-2 plant of KEI Industries began commercial production of LV/MV (low voltage/medium voltage) cables on Sept. 21.

“This brownfield expansion was started in April last year and completed this August. We commenced production last week. It has the potential to generate a yearly revenue of about Rs 750 crore to Rs 800 crore,” Gupta told NDTV Profit in a conversation.

Talking about the projections for the year, the top executive added that the company is on track to maintain Ebitda margins of around 11%. The company reported Ebitda margins of 10.4% in the firstquarter.

“Since the growth will be limited due to capacities, this year we expect the margins to remain range bound within 11%. As the new capacities come in next year, we will try to improve upon it,” he said.

Gupta further gave an initial guidance of generating 15-17% revenue with export growth of 30-40% in the financial year-ending March 2025.

“We have substantial orders in exports from our various overseas customers,” the managing director said.

KEI Industries is prepping for a major capex in Sanand, Gujarat.

Talking about the project, Gupta said, “This is a greenfield expansion with a cost of around Rs 1,700 crore to Rs 1,800 crore. The phase of the project is likely to be commissioned by May or June next year.”

The full project will be commissioned by March 2026, he added.

KEI Industries is also growing in the housing wires and cables sector on a 25% average, Gupta said. The company is aiming to increase its market share in the segment to up to 10% in the upcoming years.

“ At the moment, our market share is 6% and we expect to take it around 9% to 10% over the next three years,” he said.